Skift Take
Corporate initiatives and decision-making grab headlines, but a chain is only as strong as its operators. And they are angry.
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While fast food chains pump money into upping delivery capabilities, completing store makeovers, and even rebranding, operators are losing patience; perhaps, rightfully so. A lack of cash flow and customer traffic continues to hurt franchisees’ pockets, even as average check sizes increase.
Many executives have publicly acknowledged ongoing growth strategies will not succeed without franchisee buy-in. That is to be expected. But operators are finding it difficult to stay quiet when returns from reported positive earnings haven’t yet trickled down. Training employees on aforementioned new technologies and workflows creates yet another gripe for them to hold.
In some cases, as in Jack In The Box, perceived ineptitude on the part of higher ups has caused storeowners to organize and call for CEO Leonard Comma’s head. Franchisees are also keen on the board of directors replacing a number of other individuals who have contributed to the restaurant's lackluster performance in recent quarters. Same-store sales only just returned to plus territory in the summer, at 0.5 percent. The company reported the same figure for the period ending Sept. 30, while also missing on revenue. By comparison, McDonald’s, the world’s largest restaura
